Location: Gary, IN | Metro: Gary, IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $136,004 | 1.07% | B |
| 3BR | $1,780 | $177,380 | 1% | B |
| 4BR | $1,940 | $205,607 | 0.94% | C |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 46405, which encompasses Lake Station, IN, presents a unique opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1290, while the actual market rent, as indicated by the Zillow Rent Index (ZORI), stands at $1299. This creates a gap of $9, representing a 0.7% difference between the two figures.
Given that the FMR is slightly lower than the market rent, landlords should be aware of the potential costs associated with accepting housing voucher tenants. While the gap is minimal, it can still affect the overall profitability of a rental property. Accepting Section 8 tenants means committing to a rental rate that is below the open-market rate, which could result in a lower yield for investors.
Lake Station, IN, has a population where 24.7% are renters. The median home value in the area is $150,712, and the median household income is $60,881. These figures provide a backdrop for understanding the local real estate market and the economic conditions faced by potential tenants. Landlords must weigh the benefits of guaranteed rent through the Section 8 program against the lower rental rates compared to the market.
In summary, the gap between the FMR and ZORI in ZIP 46405 is a critical factor for landlords considering the Section 8 program. Although the difference is only $9, the decision to accept voucher tenants involves a trade-off between financial stability and maximizing rental income. Given the economic profile of Lake Station, this slight discrepancy underscores the importance of thorough due diligence before committing to the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.